Redditor Claims Gym Charging Same Total Fee Even After GST Cut: ‘Isn’t This Illegal?’

When the government slashed Goods and Services Tax (GST) on salons, gyms, and other wellness services from 18% to 5% this month, customers expected some relief in their bills. But at one fitness centre, one of the members said the gym allegedly adjusted its prices to keep the total unchanged.

In a viral post on the social media platform Reddit, a user recently claimed that he and his friend had to pay the same membership fee even after the GST rate was slashed.

On Sept. 19, the Redditor claimed that he was billed Rs 5,084.75 plus 18% GST of Rs 915.25, bringing the total to Rs 6,000. Just four days later, after the tax cut took effect, another member was charged the same amount which is Rs 6,000.

Had the gym kept the old base fee, the total bill after the reduced 5 percent GST would have been about Rs 5,339, almost Rs 630 less. Instead, the price hike in the base fee meant customers saw no reduction at all.

He revealed that the gym hiked the base fee to Rs 5,714.29 and added 5% GST of Rs 285.71, keeping the final bill unchanged at Rs 6,000.

The user further asked the Reddit community for advice. "What are my actual options here? Can I file an anti-profiteering complaint or is this one of those things authorities only act on against big companies?"

One user wrote, "Yes, this is illegal and you can complain about this to the finance ministry. Because the intention of the gym owner is to cheat."

Another commented, "Just check their pan number if they are even really paying GST."

"Reading this, I doubt they are really filing GST or just 'collecting' from customers," wrote the next.

The Redditor concluded the post by saying, "Basically, the moment GST on fitness services dropped from 18% to 5%, the gym raised the base fee so the total stayed the same, meaning instead of passing on the tax benefit, they pocketed the Rs 630 difference which looks like profiteering and under Section 171 of the CGST Act, 2017 tax cuts are supposed to be passed on to consumers."